A project report on customer satisfaction and market potential of ambuja cements

1. A PROJECT REPORT OnCUSTOMER SATISFACTION AND MARKET POTENTIAL OF AMBUJA CEMENTS

PREPARED BY: NEW DELHI

2. CONTENTSChapter-1 a) Introduction about the cement industryChapter-2 Introduction to the

organization Background of problem task Rationale Scope of the projectChapter-3 Objective of the
study  Main objective  Specific objective Chapter-4 Methodology  Data collection method 
Research methodology Swot analysis Pest analyasis Chapter-5 Data analysis Chapter-6 Limitations of
the study Chapter-7 Findings Chapter-8 Recommendations Chapter-9 Bibliography Chapter-10
Sample questionnaires

3. OVERVIEW OF THE CEMENT INDUSTRYThe Indian Cement industry is the second largest cement
producer in the world,with an installed capacity of 144 million tonnes. The industry has
undergonerapid technological upgradation and vibrant growth during the last two decades,and some
of the plants can be compared in every respect with the best operatingplants in the world. The
industry is highly energy intensive and the energy bill insome of the plants is as high as 60% of
cement manufacturing cost. Although thenewer plants are equipped with the latest state-of-the-art
equipment, there existssubstantial scope for reduction in energy consumption in many of the older
plantsadopting various energy conservation measures.The Indian cement industry is a mixture of
mini and large capacity cement plants,ranging in unit capacity per kiln as low as 10 tpd to as high as
7500 tpd. Majorityof the production of cement in the country (94% ) is by large plants, which
aredefined as plants having capacity of more than 600 tpd. At present there are 124large rotary kiln
plants in the country. The Ordinary Portland Cement (OPC)enjoys the major share (56%) of the total
cement production in India followed byPortland Pozzolana Cement (PPC) and Portland Slag Cement
(PSC). A positivetrend towards the increased use of blended cement can be seen with the shareof
blended cement increasing to 43%. There is regional imbalance in cementproduction in India due to
the limitations posed by raw material and fuel sources.Most of the cements plants in India are
located in proximity to the raw material

4. sources, exploiting the natural resources to the full extent. The southern region isthe most cement
rich region while other regions have almost samecement production capacity. The Indian cement
industry is about 90 years oldand its main sources of energy are thermal and electrical energy. The
thermalenergy is generally obtained from coal, and the electrical energy is obtainedeither from grid
or captive power plants of the individual manufacturing units.2. Salient features of Indian cement
industry• Indian cement industry is the second largest in the world with an installedcapacity of 135
MTPA. It accounts for nearly 6% of the world production.· There are 124 large plants and around 365
mini plants. The industry presents amixed picture with many new plants that employ state-of-the-art
dry processtechnology and a few old wet process plants having wet process kilns.· Production from
large plants (with capacity above 1 MTPA) account for 85% ofthe total production.· The cement
industry has achieved significant progress in terms of reducing theoverall energy intensity. Dry
process plants that the weighted average thermalenergy consumption was 734 kCal/kg clinker, and
weighted average electricalenergy consumption was 89 kWh/tonne of cement. The best energy
consumptionare 692 kCal/kg. clinker and 66 kWh/ton of cement.3. Quantitative details:The energy
intensity of the all the dry process plants (cost of energy aspercentage of total production cost of
packed cement) varies from 29 to 61%.

5. This is observed to vary with the vintage of the plant, the technology employedby the plants and
the type of cement produced.Specific thermal and electrical energy consumption for the plants
rangesbetween 692 – 879 kCal/kg. of clinker and 66 – 127 kWh/ton of cement produced(product
mix) respectively. The specific electrical energy also includes the energyconsumed in packing, plant
utilities and plant lighting. The reasons for widerange in specific energy consumption can be mainly
attributed to the differingequipment configuration employed in different sections of the plants . Total
productionThe cement industry comprises of 125 large cement plants with an installedcapacity of
148.28 million tonnes and more than 300 mini cement plants with anestimated capacity of 11.10
million tonnes perannum.The Cement Corporation of India, which is a Central Public Sector
Undertaking,has 10 units. There are 10 large cement plants owned by various StateGovernments.
The total installed capacity in the country as a whole is 159.38million tonnes. Actual cement
production in 2002-03 was 116.35 million tonnesas against a production of 106.90 million tonnes in
2001-02, registering a growthrate of 8.84%. Major players in cement production are Ambuja
cement,Aditya Cement, J K Cement and L & T cement.Apart from meeting the entire domestic
demand, the industry is also exportingcement and clinker. The export of cement during 2001-02 and
2003-04 was 5.14million tonnes and 6.92 million tonnes respectively. Export during April-May,

6. 2003 was 1.35 million tonnes. Major exporters were Gujarat Ambuja CementsLtd. and L&T Ltd.The
Planning Commission for the formulation of X Five Year Plan constituted aWorking Group on Cement
Industry for the development of cement industry. TheWorking Group has identified following thrust
areas for improving demand forcement;i. Further push to housing development programmes;ii.
Promotion of concrete Highways and roads; andiii. Use of ready-mix concrete in large infrastructure
projects.Further, in order to improve global competitiveness of the Indian CementIndustry, the
Department of Industrial Policy & Promotion commissioned a studyon the global competitiveness of
the Indian Industry through an organization ofinternational repute, viz.Table given here is
representing the cement industry growth through five yearplans……Five years plan Years Capacity
(mt) Production (mt) Pre plan 1950-51 3.28 2.20 2nd plan 1951-56 5.02 4.60 3rd plan 1956-61 9.30
7.97 4rth plan 1961-66 12.00 10.97 5th plan 1969-74 19.76 14.66 6th plan 1974-79 22.58 19.42 7th
plan 1980-85 42.40 30.13 8th plan 1985-90 61.31 45.41 9th plan 1992-97 105.26 76.22 10th pl 1997-
02 146.13 108.40

7. Cement industry has been decontrolled from price and distribution on 1stMarch 1989 and de-
licensed on 25th July 1991. However, the performance of theindustry and prices of cement are
monitored regularly. Being a key infrastructureindustry, the constraints faced by the industry are
reviewed in the InfrastructureCoordination Committee meetings held in the Cabinet Secretariat
under theChairmanship of Secretary (Coordination). The Committee on Infrastructure alsoreviews its
performance. Technological changeContinuous technological upgrading and assimilation of latest
technology hasbeen going on in the cement industry. Presently 93 per cent of the total capacityin the
industry is based on modern and environment-friendly dry processtechnology and only 7 per cent of
the capacity is based on old wet and semi-dryprocess technology. There is tremendous scope for
waste heat recovery incement plants and thereby reduction in emission level. One project for co-
generation of power utilizing waste heat in an Indian cement plant is beingimplemented with
Japanese assistance under Green Aid Plan. The induction ofadvanced technology has helped the
industry immensely to conserve energy andfuel and to save materials substantially. India is also
producing different varietiesof cement like Ordinary Portland Cement (OPC), Portland Pozzolana
Cement(PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, RapidHardening Portland
Cement, Sulphate Resisting Portland Cement, White Cementetc. Production of these varieties of
cement conform to the BIS Specifications.

8. Also, some cement plants have set up dedicated jetties for promoting bulktransportation and
export. State- wise major cement plants state No.of plants Capacity mt Andhra pradesh 24 23.96
Assam 1 0.20 Bihar 1 1.00 Chhatisgarh 9 10.36 Delhi 1 0.50 Gujrat 12 17.12 Haryana 1 0.17 Himachal
pradesh 4 4.06 J and k 1 0.20 Jharkhand 5 4.57 Karnatka 9 10.07 Kerala 1 0.42 Madhya pradesh 12
16.39 Maharashtra 8 10.95 Meghyalaya 1 0.20 Orrisa 3 2.76 Punjab 3 2.84 Rajasthan 14 17.95 Tamil
nadu 13 14.79 Uttar pradesh 7 5.07 West Bengal 4 3.13Total 134 146.71

9. Current status of Indian cement industryThe Indian cement industry has grown remarkably in the
last two decades toemerge as the second largest in the world after china. In terms of technology
,quality and productivity, India cement industry is remarkably is undeniably at thetop. Today, the
country has 134 major plants with an installed capacity of 146.71million tones. There are also 60
surviving mini and tiny units with a capacity of6.3 million tones . The combined capacity of the
cement industry is 153.01million tones . in recent years , the production of blended cement has
increasedin India as more and more companies shifting their emphasis from opc toblended
cement.With increased cement production, the cement supplies have increasedsubstantially
resulting into depressed prices, with producers are gettinginadequate returns on their investment,
affecting the bottom lines of severalcompanies.Today, the Indian cement industry is passing through
are alignment andconsolidation . Multi nationals have a strong entry in the cement market and
aretrying to get their presence by acquisitions and mergers.The per capita consumption of cement in
India, which currently is very low at 99 kg, has huge scope of growth . according to industry sources
with the intiative taken by the government on the infrastructure , particularly the north and south
corridor particularly known as “ golden qualidateral”… the working group on the cement industry
constituted by the planning commission

10. Introduction of Jk cement limitedJ.K. Cement is an affiliate of the J.K. Organization, which was
founded by LalaKamlapat Singhania. The J.K. Organization is an association of industrial
andcommercial companies and has operations in a broad number of industries.Our cement
operations commenced commercial production in May 1975 at ourfirst plant at Nimbahera in the
state of Rajasthan. At Nimbahera, we started witha single kiln with a production capacity of 0.3
million tons. We added a secondkiln in 1979 with production capacity of 0.42 million tons, and a
third kiln in 1982with a production capacity of 0.42 million tons. We added a precalciner with
acapacity of 0.4 million tons in 1988, which increased our capacity at Nimbaherato 1.54 million tons.
During the years 1998 through 2003, we continued toimplement modifications to each of our kilns,
which increased our aggregatecapacity at Nimbahera to 2.8 million tons as of September 30,
2005.We commissioned a second grey cement plant at our Mangrol plant in 2001, witha production
capacity of 0.75 million tons. As of September 30, 2005, we had anaggregate production capacity of
3.55 million tons per annum of grey cement.Our white cement plant was completed in 1984 with a
capacity of 50,000 tons.Our continuing modifications to the plant have increased its production
capacityto 300,000 tons as of September 30, 2005.Today, J. K. Cement Ltd. is one of the largest
cement manufacturers in NorthernIndia. We are also the second largest white cement manufacturer
in India byproduction capacity. While the grey cement is primarily sold in the northern India

11. market, the white cement enjoys demand in the export market including countrieslike South
Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Kenya,Tanzania, UAE and Nepal.Our access
to high quality limestone reserves that are suitable for production ofwhite cement provides us with a
competitive advantage. Based on geologicalsurveys conducted by independent agencies on our
mines between 1996 and2001, our limestone reserves for both grey and white cement are expected
tomeet our existing and planned limestone requirements of 4.0 MnTPA of greycement and 0.4
MnTPA of white cement, for approximately 40 years.Backed by state-of-the-art technology and highly
skilled manpower against thebackdrop of India’s infrastructural growth in an overdrive, we are
upbeat aboutthe future. We are confident of contributing heavily in India’s journey ofdevelopment.
We see a world of concrete ideas on the horizon. Types of product of JK cementGrey cement
produced by us consists of OPC and PPC. There are also othercements in the market that we do not
produce, such as Portland slag cement, oilwell cement, sulphate resistant cement, rapid gardening
cement, low alkalicement, low heat cement and super finish cement.OPC has three grades that
weproduce, that are differentiated by their compressive strengths, expressed inmega pascals
(“MPa”), as specified by the BIS.These grades are 53-grade OPC,43-grade OPC and 33-grade OPC,
with 53-grade OPC having the highest

12. compressive strength.The customer selects the grade of OPC based on theintended application.
Our most popular cement, by sales volume, is 43-gradecement, with 53-grade cement being used in
applications which require highstrength characteristics.Ordinary Portland CementOPC is produced by
inter-grinding cement clinker prepared in a rotary cementkiln with gypsum. Each metric ton of OPC
requires approximately 0.95 metrictons of clinker and approximately 0.05 metric tons of gypsum. The
range ofapplications, the physical and chemical requirements specified by BIS andstrength of the
three grades of OPC are discussed below:53-grade OPC (IS:12269-1987): 53-grade OPC is a high
strength cement.According to the BIS requirements, 53-grade OPC must have a 28-daycompressive
strength of no less than 53 MPa. For certain specialized products,such as pre-stressed concrete and
certain pre-cast concrete items requiring highstrength, 53-grade OPC is considered useful as it can
produce high-gradeconcrete at lower cement content levels. We produce 53-grade OPC by
exposingthe clinker to the grinding process for longer period of time,whichresults in ahigher density
and stronger cement. As the grinding process requires asignificant amount of power, finer grinding
for the 53-grade OPC requires morepower and is therefore priced higher compared to lower grades
of OPC.53-gradeOPC can be used for the following applications:

13. Portland Pozzolana CementWe also manufacture PPC (IS:1489 (Part-1) – 1991) under the brand
name J.K.Super. PPC is also known as blended cement or silicate cement, and thisblended cement
has become increasingly popular in the market in recent years.Each ton of PPC requires
approximately 0.75 tons of clinker, 0.05 tons ofgypsum and 0.20 tons of fly ash, a pozzolanic material
that is a by-product ofthermal power plants. In the manufacture of PPC, a portion of the clinker
isreplaced with fly ash. This enables the cement manufacturer to produce a higherquantity of
cement per ton of clinker. As a result, the cement manufacturer canincrease its production capacity
by making a limited investment in grindingcapacity without a corresponding investment in
earlier.stage productionequipment such as kilns.Further, the only cost incurred for fly ash
istransportation cost from the thermal power plants that generate it to the cementmanufacturing
site, as fly ash is currently available free of cost. The use of fly ashtherefore significantly reduces the
overall cost of production of cement.The advantage of PPC is its low heat of hydration and
corresponding resistanceto exposure to various environmental chemicals such as salt water. It
isparticularly suitable for marine and hydraulic construction and other massconcrete structures. This
cement has durability that is equivalent to OPC and canbe used most of the applications where OPC
is used. As PPC is generally sold ata comparable price to OPC and the cost of production of PPC is
comparativelylower, PPC’s margins per ton are generally higher compared to OPC.

14. White cementsWe manufacture white cement under the brand names J.K. White and
Camel.White cement is produced using a different quality of limestone and isdistinguished from grey
cement by its white colour. Each ton of white cementrequires approximately 1.33 tons of limestone,
0.02 tons of gypsum and 0.2 tonsof additives including white clay, feldsparand fluorspar.White
cement is typically used in three principal areas of application, as set forthbelow:• Flooring, for the
manufacturing and laying of mosaic tiles and as tile fixing grout,wall applications, such as decorative
white cement paints and plain and sprayplasters; andWhite cement is typically used in three
principal areas of application, as set forthbelow:• Flooring, for the manufacturing and laying of
mosaic tiles and as tile fixing grout,wall applications, such as decorative white cement paints and
plain and sprayplasters; andOther specialized applications including glass fibre reinforced concrete,
gardenfurniture, lamp posts, as pointing for brick and stone works and as pre-castcladding panels.
15. We sell white cement primarily in the Indian market. We also export white cementto a number of
countries, including South Africa, Nigeria, Singapore, Bahrain,Bangladesh, Sri Lanka, Kenya, Tanzania,
United Arab Emirates and Nepal. Plants of jk cements limitedWe manufacture grey cement in two
facilities located at Nimbahera and Mangrolin the state of Rajasthan in Northern India. White cement
is produced at ourfacility at Gotan in the state of Rajasthan. Our plants have obtained manyaccolades
and recognition, the most noteworthy being : ISO-9001:2000 QMSand ISO-14001:2004 EMS for the
grey cement facility at Nimbahera andISO-9001:2000 QMS, ISO-14001:1998 EMS & OHSAS-
18001:2005Occupational Health and Safety for the white cement facility at Gotan. Theconstruction
of our first most modern dry cement plant began in 1970 inNimbahera in Rajasthan.The following
table shows a breakdown of production of the Nimbahera, Mangroland Gotan cement facilities for
the periods indicated: PRODUCTION (IN METRIC TONS) Six months ended Fiscal 2003 Fiscal 2004
Fiscal 2005 September 30, 2005 2,323,283 2,272,760 2,414,196 1,256,942 Nimbahera

16. 570,464 718,572 912,419 493,211 Mangrol 200,149 215,538 224,481 99,343 Gotan Nimbahera
Unit (Grey Cement)Commenced commercial production in 1975 with an initial capacity of 0.3MnTPA.
In the year 1979, second production line was added to enhance theproduction capacity to 0.72
MnTPA. 1982 witnessed the incorporation of anotherproduction line taking the production capacity
to 1.14 MnTPA. In 1988 a pre-calciner was installed and the production capacity touched 1.54
MnTPA.Constant modernization and up-gradation was instrumental in bringing the plantto its
present capacity of 2.8 MnTPA.Capacity utilization of around 90%Can produce up to 3.1 MnTPA with
production of silicate cement on capacity of2.8 MnTPARecognition : ISO-9001:2000 QMS and ISO-
14001:2004 EMS

17. Mangrol Unit (Grey Cement)Commenced commercial production in Dec’2001 with a capacity
of0.75 MnTPA. Its close to Nimbahera plant (10kms away) – offers itsignificant synergy benefits like
assistance from technical &commercial staff of Nimbahera Complex.Additional Grinding facility of
0.25 MnTPA .

18. The production processThe production process for cement consists of drying, grinding and
mixinglimestone and additives like bauxite and iron ore into a powder known as “rawmeal”. The raw
meal is then heated and burned in a pre-heater and kiln and thencooled in an air cooling system to
form a semi-finished product, known as aclinker. Clinker (95%) is cooled by air and subsequently
ground with gypsum(5%) to form Ordinary Portland Cement (“OPC”). Other forms of cement
requireincreased blending with other raw materials. Blending of clinker with othermaterials helps
impart key characteristics to cement, which eventuallygovern itsend use. The basic differences
between these processes are the form in whichthe raw meal is fed into the kiln, and the amount of
energy consumed in each ofthe processes. In the dry process, the raw meal is fed into the kiln in the
form of adry powder resulting in energy saving, whereas in the wet process the raw mealis fed into
the kiln in the form of slurry. There is also a semi-dry process, whichconsumes more energy than the
dry process but lesser than the wet process.The basic steps involved in the production process is set
out below: Dry processAll J.K. Cement plants are dry process plants. Limestone is crushed to a
uniformand usable size, blended with certain additives (such as iron ore and bauxite)

19. and discharged on a vertical roller mill, where the raw materials are ground tofine powder. An
electrostatic precipitator dedusts the raw mill gases and collectsthe raw meal for a series of further
stages of blending. The homogenized rawmeal thus extracted is pumped to the top of a preheater by
air lift pumps. In thepreheaters the material is heated to 750°C. Subsequently, the raw
mealundergoes a process of calcination in a precalcinator (in which the carbonatespresent are
reduced to oxides) and is then fed to the kiln. The remainingcalcination and clinkerization reactions
are completed in the kiln where thetemperature is raised to between 1,450°C and 1,500°C. The
clinker formed iscooled and conveyed to the clinker silo from where it is extracted and transportedto
the cement mills for producing cement. For producing OPC, clinker andgypsum are used and for
producing Portland [Pozzolana] Cement (“PPC”),clinker, gypsum and fly ash are used. In the
production of Portland Blast FurnaceStag Cement (“PSC”), granulated blast furnace slag from steel
plants is added toclinker. Awards given to the JK White cements limitedArchitect of the Year Award
(AYA)Architecture was more or less identified with housing & more so with elitehousing. However,
many countries have used architecture effectively for publicstructures also, such as highways, metro
rails, factories, harbours & any otherpublic facilities. These projects/structures shall consume lot of
building materials.

20. If these structures have to look pleasing, relevant architecture has to be appliedin their
designs.The subject of challenges to architecture vis-a-vis town planning, infrastructuredevelopment
& affordable housing is being discussed in various countriesthrough various forums. Mr.Yadupati
Singhania, Managing Director,J.K. Cement Ltd., thought that we could contribute to this cause by
encouragingoutstanding talent in the profession of architecture as a continuous process &thereby
set an example for others in this profession to do better & better.This is how Architect of the Year
Award (AYA) began way back in the year 1990(1st Architect of the Year Award). Awards were
subsequently extended toarchitects of neighbouring countries from the year 1996 (7th Architect of
the YearAward). To encourage state level architecture, State Architecture awards werealso
introduced from the award year AYA-98 (9th Architect of the Year Award) Quality policyTechnologies
change, needs change, and in turn products change. What remainunchanged, are values and ideas
that propel any entity forward. Ideas that areconcrete and unwavering, just like their outcome.At JK
Cement we are crossing milestones, one after another, propelled by thefollowing concrete ideas :1.
To provide products that fully comply with technical specifications committed to our customers, at
the most competitive price.

21. 2. To ensure complete reliability in our dealings with customers, distributors,suppliers & other
partners.3. To operate our manufacturing facilities in such a way, that they help sustainthe
environment & provide new opportunities for the underprivileged in thatregion.4. To ensure that
every department of our every office encourages new & betterideas and freedom of expressing the
same, and cultivate a work environmentthat rewards excellence in every employee’s chosen area of
work leading to aharmonious & fulfilling atmosphere.5. To motivate every team member to
challenge his last best performance andout do it continually6. To remain abreast and imbibe the
latest technological trends for the benefit ofour customers.

22. The rationale of the studyAs my project topic suggests, I have tried to find out the
CUSTOMERSATISFACTION AND MARKET POTENTIAL OF JK WHITE CEMENTSThis topic was chosen
mainly to find whether the customers who buy JKCEMENTS require some more modifications in the
brand i.e.changes in price or improvement in the quality of the cement etc.the quality of the cement
and for this purpose people from different strata werechosen like general customers, dealers,
masons, bulk consumers etc… I have used questionnaire and other scientific tools like
personnalinterviews and telephonic interviews to know about the customer mood and theI have also
tried to find the market potential of jk cement in Delhi and NCR. Forthis I had conducted market
research in different parts of Delhi like Sarita vihar ,Nehru plce, some parts of Ghaziabad, Gurgaon
and faridabad.For this I met different dealers , retailers and masons as well as industrial bulksuppliers
in different parts of the DELHI NCR

23. Scope of the studyThis study includes direct interaction with the customers and this helps us
toknow the ‘Market potential and customer satisfaction level ‘to greataccuracy. This study is of great
importance to the company which will knowabout the customer preference to buy a particular
brand. The company will gain information about customer’s preference depending onthe following
factors:- 1. Price factor 2. fineness of the cement 3. setting time 4. attractive packaging 5. brand
image—one of the important factor 6. quick delivery time 7. wide availability So , scope of this study
is to achieve customer satisfactionbecause customer satisfaction and quality maintenance is
company’sprimary objective…

24. Objective of the study:-Main objective:- The main objective of this study is to find out the
MARKETPOTENTIAL AND CUSTOMER SATISFACTION LEVEL through scientific toolslike interviews and
questionnaire .Specific objectives:- The specific objectives will be met by finding the
customersatisfaction level through direct interaction with the customer and by knowingtheir
preference. This will include all the processes like asking questions fromthe customers through
questionnaire which will be included in the primary survey. once the primary survey is done ,
secondary survey will be done . The path ofthe secondary survey will be decided depending on the
conclusions coming outof the primary survey.

25. Research methodologyData collection method—I have selected around 50 persons for the the
interview.I have taken help of the questionnaire , personal andTelephonic interview. I have collected
the data through focus interviews. I have concentratedon taking interview mainly from the following
group of people. 1. Masons—20% 2. Architects/ engineers--- 10% 3. Retail stockiest---- 2 4.
Wholesale---- 10% 5. Industrial bulk consumer—10% 6. General consumer---- 30%

26. The survey was descriptive and sample chosen was mainly on the judgement ofthe researcher
with the help and proper consultation of project guide.. In this kind of sampling method , the
population elements are based on thejudgement of the researcher. The researcher exercises
judgement or expertise ,chooses the elements to be included in the sample , because he or she
believesthat they are represntative of the population of intrest or are otherwiseappropriate.In this
survey , I visited the dealers of cement also to know the strategy of thecompanies , especially jk
cements to satisfy the customer as they buy thecement of any particular company…. The main
purpose of the descriptive research is description of the state ofaffairs as they exist at present.Swot
analysis of JK white cementsStrengths : 1. Leading position in attractive Northern India grey cement
market: Based on CMA data, Northern Indian cement manufactuers have consistentlyoperated at the
highest levels of capacity utilization among India’s five regions.We believe this reflects the strong
demand in Northern India for cement productsrelative to supply. Further, based on capacity
expansions announced by cementmanufacturers, we expect cement plants in Northern India to
continue to operateat high utilization levels and anticipate continued strong demand for our
greycement products in the near and medium-term. We believe that we are well

27. positioned to take advantage of this demand, as the fourth largest grey cementmanufacturer in
Northern India, and the largest grey cement manufacturer in thestate of Rajasthan. 2. Second largest
white cement producer in India: White cement accounted for 16.6% of our total cement revenue and
35.2% of adjusted EBITDA from our cement operations in fiscal 2005, and 15.5% of revenues and
26.7% of our adjusted EBITDA from our cement operations in the six months ended September 31,
2005. Unlike grey cement, the white cement industry in India is highly concentrated with the two
largest players accounting for the substantial majority of India’s production capacity. Consequently,
prices of white cement have been relatively less volatile and sales of white cement have generated
more stable cash flows for us even during industry downturns in grey cement. We also believe our
position as the second largest producer of white cement in India, together with our nationwide
delivery network, significantly enhances the overall brand image of JK Cement. 3. Proximity and
access to large reserves of high quality limestone: We have access to large reserves of limestone for
both our grey and white cement operations, which we believe are sufficient to sustain our operations
well into the future. Based on independent geological surveys of different mines during 1996 to
2001, we believe that our limestone reserves are sufficient to support our current and planned
capacity for approximately 40

28. years for both grey and white cement. (Put in risk - assuming we are able to renew our existing
leases upon their expiry) As one of the first cement producers in Northern India, we were able to
choose our limestone reserves in an area with high quality limestone resources. 4. Quality of
products and strong brand name: We believe that brand name and reputation are important to retail
purchasers of cement in India. We have built a strong reputation among cement purchasers by
consistently providing high quality products. We believe that there is strong customer awareness of
our brands, JK Cement (“Sarvashaktiman”), for grey cement in our principal market in Northern India,
and JK White (“Camel”), for white cement across India. Further, we believe that our brand name and
our reputation for consistently supplying high quality products provide us with a competitive
advantage in ensuring that cement dealers carry our products. 5. Extensive marketing and
distribution network: We have a wide distribution network for grey cement in Northern India.
Wealso have a strong all-India distribution network for white cement. Our distributionnetwork for
grey cement products consists of 44 feeder depots serviced by sevenregional sales offices in Delhi,
Haryana, Uttar Pradesh, Punjab, Rajasthan,Madhya Pradesh and Gujarat. Our white cement network
comprises 20 feederdepots serviced by 13 regional sales offices in Delhi, Chandigarh, Uttar
Pradesh,West Bengal, Andhra Pradesh, Tamil Nadu, Karnataka, Kerala, Maharasthra,

29. Gujarat, Madhya Pradesh and Rajasthan. In addition, we have more than 4,000retail stores that
stock our grey and white cement products, as well as 22 salespromoters and four handling agents.
We believe that the extent of this network,and our relationships with our dealers, enables us to
maket and distribute ourcement widely and efficiently.6. Experience and technical know-how:We
have 30 years of experience in the Indian cement industry, which we believeprovides us with the
skills to maximize production efficiency, expand productioncapacity quickly and reduce costs. Over
the years, we believe that we havedeveloped long-term customer relationships and a strong
reputation for quality. Inaddition, we have a proven track record of upgrading and modernizing
ourproduction capabilities efficiently, having increased our production capacity atNimbahera by
more than 80%, from 1.54 million tons in 1998 to 2.8 million tonsas of September 30,
2005.Weaknesses : 1. It is at relatively low position in other parts of the country except north. 2. Low
attention on customer relationship management in some parts of INDIA.

30. 3. No high revenue from the white cement market because there are only two players who have
considerable market share and this has resulted in the stable cash flows. 4. Due to presence of other
cement producers in Delhi and its adjoining areas the market share of the JK cement remains low. 5.
It has its own mines reserves but it has to consistently renew the lease failing which it will have no
source of production at its major production site. Opportunities : 1. Rural projects of state
governments and central governments like dams and bridges can be a major opportunity for the
company. 2. Company is a part of reputed and huge jk group. So it can expand its market in foreign
areas also utilizing its brand leverage. 3. Prestigious Projects can be major opportunities. 4. It has
major opportunities in real estate industry due to boom in the relatedprojects. 5. Indian
infrastructure is seeing a two fold increase. So there is also a lot ofopportunity in the concerned
sector 6. Major foreign projects of governments can also be a major opportunity.

31. Threats 1. Cost of production is high. So company needs to reduce the cost of production and
should concentrate on promotional schemes too. 2. Presence of other big players in delhi region is a
major threat for the company. 3. Rising cost of raw material is also a threat for the company
Marketing strategy of jk cements limited 1.SEGMENTATION:- The company has segmented the
market geographically . it sells its products all ovwer India with major presence in northern region
PRICING STRATEGY1. . Before deciding the price of the cement company has considered the following
points:-- Cost factor:- Manufacturing cost Transporting cost Storing and material handling Other cost
Officer expenses Other expenses Tax and interest Competitor’s price and offering

32. MARKETING STARTEGYCompany conducts market surveys to identify market trends and
customer’sresponse, company position in the market etc. There is R and D departmentwhich
continuously trying to improve the quality of the product at theminimum cost and trying to meet the
demand of the customer. MARKETRING STRATEGY FOR COMPETITORSCompany always keeps an eye
over its competitors activities and itsofferings like different promotional schemes, product price etc.
It also takesproper action according to competitors strategy. DISTRIBUTION STRATEGYThe company is
distributing cement by following ways:-Direct to consumerDepot1.whole seller2.retailer

33. Director General of sales and disposal1. Tender sales2. Government departmentNon trading
sales1 wagon load2. Institutional sales Method of developing dealers:-Company conducts the market
survey also to motivate the sub dealer andadvertise the programmer. The company takes profile of
the dealers andgives dealership only to those in a particular area where the company is nothaving
already existing dealer. MARKETING STRATEGIES1. To increase sales in high realization2. To develop
stockiest network consisting of retailer or final outlet whichdirectly sells to customer.3. Increasing
sales of branded cement ie jk white cements4. Marketing distribution network more efficient and
cost effective. The company has a dedicated team of highly skilled professionals andExperienced
application engineering. They are functioning in an advisorycapacity. Besides handling their
constructional problem the cell offering all

34. kind of assistance in the selection of the right cement for different applicationto ensure cost
effective , durable and safe construction.

35. DATA ANALYSISIn this section , we will analyze the data which was obtained through different
means ofdata analysis like questionnaire, personal interviews. Since this survey was related tothe
cement industry, so people related to it like masons, bulk consumer , retailer andabove all general
consumer were interviewed. The whole data analysis section is done with help of different charts,
barsand other techniques available. The interview was mostly done on selectedpersons of selected
category. I have done survey mainly on the basis of followingstructure…..1. Masons—20%2. Arch/
Engineers—10%3. Retail stockists--- 20%4. Wholesalers--- 10%5. Bulk consumers—10%6. General
consumer—30%For doing the survey , a questionnaire was designed as a scientific tool so as toknow
the customer’s attitude towards the satna cement works limited. The main purpose of this survey
was to know the customer satisfactionlevel. This survey was done partially DELHI and somepartsd of
NCR also. Someother parts of the country like the neighboring UP was also touched for thesurvey.

36. DATA ANALYSISThis page and onwards will contain step by step analysis of differentquestions…Q
1 How important is price for you while buying the cement? 1. MASONS Choices / options No of
respondents 1. Extremely important 3 2. Rarely important 2 3. Not at all important 0 Importance of
price respondents 4 3 no of 2 1 0 Extremely Rarely important Not at all important important
choices /options

37. 2. Arch / engineers Options / choices No of respondents 1.Extremely important 2 2.Rarely

important 1 3.Not at all important 0 2 1.5 1 0.5 0 Extremely Rarely Not at all important important
importantQ .2 Do you consider colour of cement as an important factor for buying of thecement? 1.
Masons Options /choices No respondents 1.Definitely important 2 2.Not so important 1 3.Sometimes
important 1 4..Not sure 1 colour of cement 5 4 no of 3 responde 2 nts 1 0 Definitely sometimes
important important choices
38. 2. Retail stockists. Options No of respondents 1.definitely important 1 2 .not so important 2
3.sometimes important 1 4. not sure 1 Definitely important Not so important sometimes important
Not sure3. General consumer Options No of respondents 1.Definitely important 1 2.Not so important
4 3.sometimes important 1 4.not sure 1 Importance of colour 4 No of 2 respondents 0 Definitely Not
sure important ParametrsAbove interpretation indicates that colour of the cement is not an
importantfactor. From survey done on different group of people , it is evident that masons,retail
stockists and general consumer, all of them do not give too much attentionto colour of the
cement….Q .3 Is early setting time an important factor in buying of the cement?

39. Architects / engineers No of respondentsParameters1.Important 12.Not important 03.Extremely

important 24.Not sure 0 2 1.5 1 0.5 0 Important extremely important3. Retail stockiest No. of
respondentsParameters1.Important 12.Not important 03.Extremely important 34.Not sure 1

40. Important Not important extremely important Not sure4.General consumerParametrs No. of
respondents1. Important 22. Not important 13.Extremely important 44. Not sure 0 4 3 2 1 0
Important Not extremely Not sure important importantThe above interpretation clearly indicates
that early setting time is one of theimportant factor with all group of people giving more weightage
to it.Q .4 Do you think that attractive packaging is an important factor while buying acement?1. Retail
stockiest.Parametrs No of respondents1. Very much 22. Not so much 2

41. 3. Can’t say 1 2.5 2 1.5 1 0.5 0 very much not so much cant say2. Whole salersParametrs No. of
respondents1. Very much 12. Not so much 13.Can’t say 1 1.5 1 Series1 0.5 0 very much not so much
cant say3. General consumerParameters No of respondents1.Very much 22. Not so much 43.cant say
1

42. 5 4 3 2 1 0 very much not so much cant sayThe response to this question clearly indicates that
people do not tend to buythose cement which have good and attractive packaging as after all
qualitymatters.4. Rate the following on the scale of 1 to 5!! ParametersBrand Brand Delivery Price
Packagingname image timeACC 4 3 3 4GUJ 3 3 3 3AMBUJASATNA 3 2 3 2CEMENTSLAFARGE 4 3 3
3Table given here is determining the customer’s preference of different brandsdepending on
different parameters. It is evident from the table that ACC and LAFARGE excel on everyparameter i.e.
brand image, delivery time, price and packaging etc…. Brand image and price are one of the
important factors in the selection ofany Cement.Q5. Do you prefer the cement which is very fine (i.e.
fineness of the cement)?1. Masons

43. Parametrs No of responses recieved1. Sometimes 12. Always 23. Never 14.Can’t decide 1
Fineness of the cement2.5 21.5 10.5 0 Sometimes Always Never Cant decide2. Retail
stockiestOptions Response1. Sometimes 12. Always 33. Never 14.Cant decide 0 Sometimes Alw ays
Never Cant decide

44. 3. General customerChoices / options Responses1. Sometimes 32. Always 33.Never 14.Cant
decide 0 3.5 3 2.5 2 1.5 1 0.5 0 Sometimes Always Never Cant decideWe can interpret from the
response received that fineness of the cement is one of theImportant factor that consumer takes
into account while buying a cement.Q6. How many retailers of Ambuja Cement do you find in your
city?1. MasonsNo. of retailers Response1 . 1-5 22. 5-7 33. 7-10 04. More than ten 0

45. no. of retailers 4 3 2 1 0 one-five five-seven seven -ten more than 102. WholesalersOptions NO.
Of responses1. 1-5 12.5-7 23.7-10 04. more than 10 0 3 2 1 0 one-five five-seven seven -ten more
than 10The response received from the customers indicate that there are enoughcement retailers in
their city.7. If you were a dealer Which type of schemes and incentives do you exceptfrom the
company?Options No of responses1. Gift items given 12. Award for best retailing 23.Promoting
certain incentive 0

46. schemes4.Educate about the 0company’s policy5. Foreign tours 2It is evident that the retailers
want awards, tours and gifts on equal basis. 2.5 2 1.5 1 0.5 0 gifts items awards incentive education
foreign tours schemes8. Do you find your desired cement easily in your city?1.MasonsOptions
Responses1.sometimes 22.Always 23.Never 1

47. sometimes always never2. Industrial bulk consumeroptions No. of respondents1. Sometimes
12.Always 23.Never 0 2 1.5 1 0.5 0 sometimes alw ays never3. General customer choices responses
1. sometimes 2 2. never 1 3. always 4

48. 5 4 3 2 1 0 sometimes never alwaysQ 9. Which medium of information made you aware about
satna cements?1.General customerOptions Level of responses1. Newspapers 22.Hoardings 33. TV
ads 14. Meeting with dealers 1 3.5 3 2.5 2 1.5 1 0.5 0 newspaper hoardings tv ads meeting with
dealers

49. 2. Industrial bulk consumeroptions No of respondents1.Newspaper 02.Hoardings 13.Tv ads

04.Dealers meet 2Analysis of this question reveals that hoardings are the best means of
thecommunication as any illiterate person can also read the various signs whichcould be there on the
hoardings….. and also there should be regular dealer newspapermeeting to know the customer
aware of the cement… hoardings tv ads meeting with dealersQ9. Do you find compressive strength
of the cement as a major factor whilebuying any cement?1. Masons.Options Response rateVery
much 3Not much 2Cant decide 0 3.5 3 2.5 2 Series1 1.5 1 0.5 0 very not much cant much decide2.
General customer

50. Options Response levelVery much 5Not much 1Can’t decide 1 6 5 4 3 2 1 0 very much not much
cant decideAnalysis of this question reveals that customers don’t comprise on the matter ofquality…
Q 10. Is the response time of the company to the complaints satisfactory?1. WholesalersParameters
Response level1. Satisfactory 12.Good 13. Not so good 14. Not sure 02. General customerParameters
Response level1. Satisfactory 32 Good 23. Not so good 14. Not sure 1 Hence , we analyze that
response time of the company to the complaints is overall satisfactory….

51. Chapter –6Limitations  This survey was conducted partially in DELHI , northern part of India and
some parts of UP. So market potential of the JK cement in other parts of the country couldn’t be
determined.  Some customers were not able to understand some of the questions.  The sample
size was not enough and it failed to give the clear picture or the results of the survey.(Sample size
=50 )  Some customers or dealers did not cooperated well.  The questionnaire did not cover the
whole aspect of the market potential of JK cements limited.

52. FindingsOn the basis of analysis of the questionnaire and data analysis, we find that:----1. Market
potential of the Jk cement limited is very good in the northern partsdespite the presence of so many
branded cement companies like ACC ,GUJRAT AMBUJA etc.2.Customer satisfaction with respect to
the JK cement is satisfactory.

53. 3. Despite the increasing cost of the raw material the company is able to bringdown the cost of
manufacturing through procurement of raw materials by themines which are located nearby .3.
Customers come to know about JK cements mainly from hoardings as manypeople are illiterate .4.
Customers want more prizes and dealers want more incentives , gifts andtours.Dealers also want
more meeting with officials of the cement companies.5. Bulk consumers want more and more cash
discount. Suggestions1. The company should concentrate on more aggressive advertisement
topromote their products.2. The company should launch more and more promotional schemes like “
twofor the price of one” or more discount coupons.3 Company should do more to promote their
brand as customer prefer goodbrand while buying any cement.

54. 4. Customer prefer price as an important factor while buying any cement so thecompany should
fix the price accordingly.5. Company should concentrate on direct meeting with the customer as they
arethe most vital element in deciding the growth or decline of any company.6.Company should
decrease the response time to the complaint received.7.The company should fix certain amount of
cement especially for the dealersand give them free of cost as incentives.8. The company should
appoint more and more persons for the promotions of thebrand.9. The company should expand its
market and concentrate in deep penetration innorthern part of India.10. Company should decrease
delivery time of the cement.

BIBLIOGRAPHY

1. www.jkcement.com 2. www.jk-white.com/ 3.Labour and Industrial chronicle-- Survey of major

cement plants 4. Marketing research—Naresh kumar Malhotra , Pearson education 5. Marketing
Management—Phillip Kotler